A Thomas Petters-linked hedge fund fraud case will go to trial, a federal judge has ruled.

Marlon Quan and his Acorn Capital Group and Stewardship Investment Advisors are accused of helping Petters cover up his $3.5 billion Ponzi scheme, engaging in so-called "round-trip" transactions in which Petters wired money to the firms which was returned immediately. Quan allegedly raised more than $459 million for the scam, according to a 2011 Securities and Exchange Commission lawsuit.

The suit will now go before a jury after U.S. District Judge Ann Montgomery rejected both sides' motion for summary judgment.

Montgomery found that the question of whether Quan's "lockbox account" and due-diligence representations were actually misleading is for a jury to determine.